Covestro to Close Three Polycarbonate Lines at Antwerp; Ceases Local Bisphenol A Production

On October 15, Covestro announced plans to shut down three of the four polycarbonate production lines at its Antwerp site in Belgium and to cease local production of the polycarbonate precursor bisphenol A, affecting around 260 employees. For supply inquiries on engineering plastics and raw materials, buyers can contact our export team.

Structural Losses Drive the Restructuring

Covestro CEO Markus Steilemann said that the European chemical industry is at a crossroads, with severe structural challenges and fundamental changes in the market. Covestro needs to adjust its product portfolio in order to succeed in long-term competition. The company said its polycarbonate business in Antwerp has been posting worsening losses since 2022, mainly due to weak demand in Europe, high energy and production costs, and persistent global overcapacity in polycarbonate. Capacity utilization has fallen significantly and is expected to remain low for the foreseeable future.

According to available information, the four polycarbonate production lines in Antwerp have a combined annual capacity of 240,000 metric tons, and the two bisphenol A units have a combined annual capacity of 245,000 metric tons. Covestro believes that the current operating model for its polycarbonate business in Antwerp is economically unsustainable. If action is not taken now, it would undermine the long-term economic viability of the Antwerp plant.

What Is Retained at the Site

However, Covestro said that the Antwerp site plays an important role in its European production and innovation network. Most of the site’s operations will be retained, and the remaining polycarbonate production line will focus on higher-value specialty products. The previously announced construction of an aniline production facility will proceed as planned. The decision signals a broader trend of European chemical producers rationalizing capacity amid high energy costs and global overcapacity, while shifting toward differentiated, high-margin product lines.

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